By ALISHA HOULIHAN for AML Intelligence
UKRAINE called on FATF delegates meeting in Paris today (Monday) to blacklist Russia from the body.
It follows claims that the Kremlin is blackmailing some FATF members to stay in the organisation as well as deepening its relationship with already blacklisted countries.
Kyiv’s FIU said that since the last plenary in June, Russia’s cooperation with Iran and North Korea has intensified. The unit also said that Russian president Putin has admitted the Kremlin financed the Wagner Group from the state budget – all of which are blatant violations of FATF’s rules and standards.
“This additional evidence calls for an urgent escalation of actions by FATF,” the Ukrainian finance ministry said.
FATF delegate are meeting in Paris all this week (October 23–27).
In a statement the Ministry of Finance of Ukraine and the Financial Monitoring
Service of Ukraine (FIU) said “the evidence shows Russia to have significantly increased its violations of FATF standards since the last plenary in June.
“These include the blatant admission by Putin that the Russian state fully
financed the Wagner group to the tune of $1 billion and russia’s intensified collaboration with the UN-sanctioned and FATF-blacklisted countries – Iran and North Korea. The arms trade between these countries has flourished in direct breach of the UN sanctions and FATF standards.
“Russia has also failed to prevent the use of its crypto exchanges for processing of funds linked to terrorist and criminal organisations,” the statement said.
It also claimed that in recent months, Russia has stepped up attempts to blackmail FATF-member states to side with them in violation of the FATF rules-based processes and procedures. “The tactics range from pressuring African nations to ratify Russia’s observer status at the Eastern and Southern Africa Anti-Money Laundering Group, pushing for support from China and Saudi Arabia citing the
protection of trade relations, and threatening to amend key commercial and defence arrangements with India unless they support the blocking of further action by FATF.”
“In February, FATF acted decisively to suspend Russia, acknowledging that its actions run counter to the organisation’s core principles. FATF also expressed concerns over the reported arms trade between Russia and UN-sanctioned jurisdictions as well as the cybercrimes emanating from Russia. Since then, Russia has only escalated its violations of FATF’s standards and UN sanctions,” Minister
Marchenko said in a statement.
The Minister claimed “Russia is making a mockery of FATF’s principles and using underhand tactics to try and prevent further restrictive measures meant to counter its risks to global financial security. This blatant politicising of a neutral, rules-based process cannot go unnoticed; Russia must be blacklisted by FATF and a relevant statement detailing risks should be issued to warn the international financial community.”
The head of the Financial Intelligence Unit of Ukraine Igor Cherkaskyi said: “Russia has never been closer to the world’s most dangerous regimes and terrorist organisations. The evidence is indisputable that Russia’s illicit activities threaten global peace and security. Russia’s ever-increasing violations of international norms demonstrate that today the protection of international financial security must be a global priority.”
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